Over the past decade, global venture capital investment has more than doubled, soaring to around $300 billion a year, according to Crunchbase. Now, with artificial intelligence fueling a fresh surge of interest, many are asking if the next ten years could bring another dramatic leap in funding.
This explosion didn’t happen overnight. Since 2014, three powerful forces have redefined how and where startup capital flows: a global expansion of venture activity, the rise of $100 million-plus “megarounds,” and the explosive growth of AI funding.
It’s not just about dollars. It’s about the transformation of the entire startup ecosystem—where it’s happening, who’s getting funded, and how value is being created faster than ever before.
VC Goes Global — Then Swings Back to the U.S.
Back in 2010, U.S.-based startups dominated the venture capital landscape. But by 2016, international startups were collectively receiving more capital than their American counterparts. That global trend held strong until recently, when the AI boom pulled the spotlight back to the U.S.
In 2024 alone, American startups attracted 56% of all venture capital dollars—driven by billion-dollar deals into AI giants like OpenAI and Anthropic. While global VC is still broad and diverse, AI has made the U.S. its epicenter once again.
The Megaround Era: Bigger Bets, Fewer Rounds
Another striking trend? The meteoric rise of megarounds—VC deals of $100 million or more. In 2024, these huge rounds made up over half of all venture capital funding. Just a decade ago, rounds under $50 million were the norm. Today, they make up only 38% of total funding.
Megarounds first passed the 40% mark in 2016 and peaked at 59% during the record-breaking year of 2021. While deal volume may have cooled since then, large-scale funding is here to stay.
Battery Ventures partner Dharmesh Thakker believes we’re only getting started. As AI products become faster and easier to build, he expects to see even bigger winners—companies that can scale to $100 billion or more. But the downside? More competition and higher failure rates, as technical defensibility fades in a crowded field.
The 2021 Spike: Record-Breaking, But Not Sustainable
Venture capital exploded in 2021, doubling from the year before and reaching heights never seen in Crunchbase’s records. But most now see that year as an anomaly—fueled by pandemic-driven digital acceleration and record-low interest rates.
Even so, the long-term growth remains impressive. Between 2014 and 2024, the venture ecosystem more than doubled in size. Though slower than the 7x growth seen from 2010 to 2020, it still reflects a maturing industry that continues to shape global markets.
The Enduring Power of Mid-Sized Rounds
Despite the dominance of megarounds, early and mid-sized rounds still matter. Since 2022, funding rounds between $5 million and $50 million have made up roughly a third of all VC dollars. These rounds often mark a company’s critical leap from idea to scale—and they remain vital for the next generation of breakout startups.
Rounds under $5 million, on the other hand, have declined in share, suggesting that early-stage investing is shifting toward larger initial checks.
The AI Tsunami Reshaping VC
Nothing has shifted the investment landscape more than artificial intelligence. In 2024, AI-related startups pulled in over $100 billion in funding—up from $57 billion in 2023. That’s a third of all global VC money.
From foundation models and infrastructure to industry-specific applications in health, robotics, defense, and beyond, AI is reshaping every sector. And it’s still early. Most experts expect the generative AI wave to unfold over the next 10 to 20 years, as adoption spreads and business models mature.
Thakker believes AI could double or even triple the addressable market for software and tech, unlocking $2 to $3 trillion in value. As AI augments or replaces certain types of human labor, he expects a new generation of tech giants to emerge—decacorns that could rival the likes of Snowflake or ServiceNow.
What’s Next for Venture Capital?
The next decade could be just as disruptive as the last, or even more so. Will venture capital continue its upward trajectory? Or will we see a reset in how early-stage startups are funded?
One thing is clear: as AI continues to drive innovation, the lines between tech, labor, and value creation are being redrawn. Investors with vision—and the courage to place big bets—will shape the next chapter of the startup economy.
